Aggregated News From Investment Management Regulators

SEC Charges Broker Who Defrauded Seniors Out of Almost $1 Million


Please complete the required fields.

The U.S. Securities and Exchange Commission today announced charges against a Nashville, Tennessee-based securities broker for defrauding two seniors, including a World War II-era veteran, of nearly $1 million.

According to the complaint, Frederick Stow acted as the veteran’s registered representative for more than three decades and inserted himself over time into the veteran’s personal and financial affairs. The complaint alleges that in October 2015, Stow began making unauthorized sales of securities from the veteran’s individual retirement account. Stow allegedly transferred the proceeds of those sales to his own bank account on 74 occasions using falsified wire transfer forms. The complaint further alleges that approximately one month after the veteran’s death in March 2019 at the age of 98, Stow stole money from another senior by wiring money from the senior’s brokerage account to Stow’s own bank account without authorization. In total, Stow stole $933,500 from the seniors.

“Far too often, veterans and seniors who depend on their investments for retirement income are targeted by fraudulent schemes,” said Justin Jeffries, Associate Regional Director for the SEC’s Atlanta Regional Office. “As alleged in our complaint, Stow took advantage of these seniors, abusing his access to their brokerage accounts to generate income for himself.”

The SEC has charged Stow in the U.S. District Court for the Middle District of Tennessee with violations of the antifraud provisions of the federal securities laws. The SEC is seeking injunctive relief, the return of allegedly ill-gotten gains plus prejudgment interest, and a civil penalty. In a parallel action, the U.S. Attorney’s Office for the Middle District of Tennessee filed criminal charges against Stow.

Investors can find additional information about how to protect their investments at The Office of Investor Education and Advocacy and Division of Enforcement’s Retail Strategy Task Force encourage active and retired military and senior investors to learn more at the military and senior investor education webpages on and report any suspicious investment-related activity or schemes using the SEC’s online tips, complaints, and referrals (TCR) system.

The SEC’s investigation was conducted by John Westrick of the Atlanta Regional Office and supervised by Matthew McNamara. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Middle District of Tennessee, the Nashville Field Office of the U.S. Secret Service, and the Financial Industry Regulatory Authority.

Regulator Information

Abbreviation: SEC
Jurisdiction: United States

Recent Articles

CVM advises on registration requests for public offering coordinators

This post was translated by Regulatory.News for informational purposes only; the content below is not an official translation from the regulator. See the content...

Remarks by U.S. Treasurer Chief Lynn Malerba at a White House and U.S. Mint Event Honoring the American Women Quarters Program

As Prepared for Delivery Kutapatotamawush (Thank you) all so much for being here today. Nuteeooees Soqsqa Mutawi Mutahash wuchee Moheehkanuwak My name is Chief Many...

EBA consults on standards for supervisors assessing the new market risk internal models under the Fundamental Review of the Trading Book

The European Banking Authority (EBA) launched today a public consultation on its draft Regulatory Technical Standards (RTS) on the assessment methodology under which competent authorities verify inst

OCC Appoints Six New Members to Mutual Savings Association Advisory Committee

WASHINGTON—The Office of the Comptroller of the Curren

READOUT: Financial Stability Oversight Council Meeting on March 24, 2023

Today, U.S. Secretary of the Treasury Janet L. Yellen convened a meeting of the Financial Stability Oversight Council (Council) in executive session by videoconference. During...

Get the latest from Regulatory.News in your inbox!